Realtors’ body the Confederation of Real Estate Developers' Associations of India (CREDAI) now needs assistance from Prime Minister Narendra Modi and the Reserve Bank of India’s intervention in the matter of banks and FIs not lending funds to the projects not registered by far with respective state Real Estate Regulatory Authority (RA).
Reportedly banks have decided not to pull out loan for those projects that have not been registered under RERA. Thus the RERA consent is must for any bank borrowing for the projects and the developers.
CREDAI cited in a press release that lack of suitable infrastructure and notification of RERA regimes has promoted majority of developers not being able to register their respective projects within the deadline induced hold-ups and a loss of revenue for both the state and central government.
CREDAI has also brought the fact in light that most of the states that notified RERA haven’t formed any RA till date and some of them have just appointed one. The developers’ body also claimed that this is the devil of all roots for developers not being able to register within due time; again the RERA authority is having its own set of laws which have increased the level of difficulty for the developers in maintain the hand over itinerary. This has directly hit the consumers funding as they continue losing money in the form of monthly EMIs on the borrowed home loan and paying for a rented accommodation.
This has also led to the shortage of liquidity in the development business. In the press release CREDAI also added, “However, there is no legal support in place for this stance taken by them. This move further hampers the developers in completing their projects which means delayed possession to customers who have taken loans, pushing them into financial distress.”
CREDAI demands more clarity in certain provisions of RERA such as the definition of an ‘ongoing project’ and it has also asked alacrity of the entire state and central level processes concerning RERA and correlated proceedings.
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